The Striking Price

Peterffy's Smart Plan for Flash Trades

One of high-frequency trading's fathers has offered the SEC a plan to keep HFTs from taking advantage of investors.

It is easy to lambast high-frequency trading as an automated pickpocketing machine that legally steals from investors. It is much harder to mitigate HFT's market impact without getting lost in the cobweb of complex regulations that govern the nation's exchanges and trading venues.

Thomas Peterffy, one of the fathers of electronic trading, has recommended a simple solution to the Securities and Exchange Commission that, if enacted,...